Game Giant Nexon Puts $100M in Bitcoin on Balance Sheet

Purchase represents 2% of all cash on hand for Nexon, the second publicly traded company in Asia to have bitcoin on its balance sheet.

article-image

Maple Story 2, One of Nexon’s most popular video games; Source: Nexon

share

key takeaways

  • The Tokyo-based gaming company has purchased 1,717 bitcoins at an average price of about $58,226 each
  • Nexon is the third major company in Asia to put bitcoin on its balance sheet after Meitu and messaging giant LINE

Tokyo-based gaming giant Nexon has purchased $100 million in bitcoin at an average price of $58,226. Nexon has been a member of one of Japan’s most important stock indexes, the Nikkei 225, since 2020. 

Similarly, fashion-app Meitu was the first major company in the region to purchase bitcoin, and now holds over $100 million of bitcoin and ethereum in its treasury. However, Nexon is the bigger firm with its $30 billion market cap versus Meitu’s $1.4 billion.

Messaging app LINE, a division of Korean web company Naver, is also said to have bitcoin on its balance sheet which it used to launch a proprietary digital asset called LINK and an app-based cryptocurrency exchange for Japanese users.  

“Our purchase of bitcoin reflects a disciplined strategy for protecting shareholder value and for maintaining the purchasing power of our cash assets,” Owen Mahoney, Nexon’s Chief Executive Officer, said in a statement. “In the current economic environment, we believe Bitcoin offers long-term stability and liquidity while maintaining the value of our cash for future investments.”

In early February, Nexon’s earnings showed the company was flush with cash as gaming became an even more popular pastime for people stuck at home. The company posted income of $143.3 million on revenue of $610 million. It said revenue was up 35% on-year. The company currently owns Bitstamp and Korbit.

Buying bitcoin to guard against the cash-killing nature of inflation is one reason firms like MicroStrategy are loading up on digital assets, according to MicroStrategy’s CEO Michael Saylor.

However, Japan is an extreme outlier in this regard because the country can’t seem to move the inflationary needle. As a result, Japanese firms don’t really have a need for bitcoin on the balance sheet as their peers in other countries do which makes this investment unique.

Tags

Upcoming Events

MON - WED, MARCH 18 - 20, 2024

Digital Asset Summit (DAS) is returning March 2024. What you can expect: And more! Don’t miss out on the opportunity to be in the room when the future of crypto is decided. Join us and help shape the future of our […]

recent research

Research report - cover graphics-2.jpg

Research

Base has doubled-down on its commitment to the Superchain vision, has shown early signs of success with nearly $400M in TVL, and has become home to novel dapps such as friend.tech which has seen significant traction.

article-image

The FCA expressed concerned that ‘unregistered, overseas’ crypto firms with UK customers haven’t responded to the regulator

article-image

Upland is a metaverse game that has sold NFTs for charitable purposes in the past

article-image

The bitcoin halving slated for April 2024 — an event expected to spur upward price action for BTC — could be a boon for Block’s stock price, analysts say

article-image

Seed Club founder Jess Sloss is excited to “open the doors and let other people see what we’ve been seeing for the last few months”

article-image

Blockchain is a “natural fit” in games based on open economies and user-generated content, says Wyatt

article-image

Their current stance is a half-baked attempt that could stifle innovation and burden an emerging industry